The Union Cabinet has approved a 2% increase in the Dearness Allowance (DA) for central government employees, effective immediately. With this revision, the DA will rise from 53% to 55% of the basic salary.
This decision will offer a much-needed salary boost to the employees who are facing the ongoing pressures of rising inflation. The last increase in DA was made in July 2024, when it was raised from 50% to 53%.
Who will benefit from the DA hike?
The latest DA hike will benefit a wide group of individuals within the central government:
- Central Government Employees: The primary beneficiaries of this increase are active central government employees, who will see an immediate rise in their monthly pay.
- Pensioners: Pensioners, who receive pensions from the government, will also see a 2% increase in their pension amounts, offering them financial relief.
- Family Pensioners: In addition to employees and pensioners, family pensioners – individuals receiving pensions due to the death of a government employee – will also benefit from the DA revision.
What is Dearness Allowance (DA)?
Dearness Allowance (DA) is a cost-of-living adjustment allowance provided by the government to its employees to help them manage the impact of inflation. The purpose of DA is to offset the rise in living costs and ensure that government salaries retain their value in the face of increasing prices.
While basic salaries are revised by the Pay Commission every 10 years, DA is adjusted periodically, usually twice a year, to keep pace with inflation and ensure employees’ purchasing power is not eroded.
